The Keynesian analysis of aggregate demand indicates that changes in the money supply
Have no effect on aggregate demand
Shift the aggregate demand curve in the opposite direction of the change in government spending
Shift the aggregate demand curve in the same direction as the change in government spending
Move the economy along the aggregate demand curve rather than shifting it
The macro economic thinking was revolutionized by
David Ricardo
J.M. Keynes
Adam Smith
Malthus
The total quantity of an economy's final goods and service demanded at different price levels is
The aggregate supply curve
The aggregate demand curve
The Phillip's curve
The aggregate expenditure function
The most important determinant of consumption and saving is the:
Level of bank credit
Level of income
Interest rate
Price level
The aggregate demand curve shift to the left when
The money supply falls
The price level increases
Taxes are increased
All of the above
The aggregate demand curve is downward sloping because
A lower price level, holding the nominal quantity of money constant, leads to a larger quantity of money in real terms causes the interest rate to fall, and stimulates planned investment spending
A lower price level, holding the nominal quantity of money constant leads t a larger quantity of money in real terms, causes the interest rate to fall, and stimulates planned investment spending
A higher price level, holding the nominal quantity of money constant
A higher price level holding the nominal quantity of money change
The Marginal Propensity to Consume
ΔS/ΔY
C/y . ΔP/ΔQ
ΔP/ΔQ
ΔC/ΔY
The Classical Theory assumed the existence of
Unemployment
Disguised unemployment
Full employment
Under-employment
The accelerator theory of investment says that induced investment is determined by:
The rate of change of national income
The level of aggregate demand
Expectations
The level of national income
What is the marginal propensity to consume?
The ratio of the change in consumption expenditure to the change in disposable income
The percentage of income that is consumed
The percentage of income that is not saved
One minus the fraction of total disposable income that is saved
